Commodity Chart - Dollar Index Futures: Long Term Chart
Dollar Index Analysis - June 29, 2006
Dollar Index Futures - If you are looking for a market at extreme lows, look no further than the Dollar Index. The fundamentals still look poor for the market and it has been on a staedy decline since 2000. Historically, .80 has been the key area of support for the market. Keep an ear open to the Fed / Treasury to hear their policy on the Dollar. If they say the are changing policy to strongly support the Dollar, we will most likely have a bottom.
Outlook on Dollar Index Futures: Technically, the Dollar Index bounced off major long-term support near 80. That looks like a very good buy zone. Remember that currencies trend for long periods of time. When the trend changes, it could be a nice run. We could see a possible 1-2-3 setp here or a major double bottom. A break of 80 would look bad on the charts, however if there is no follow through on that break, we may have a trend reversal.